bgnbd_CET {CLVTools}R Documentation

BG/NBD: Conditional Expected Transactions

Description

Calculates the expected number of transactions in a given time period based on a customer's past transaction behavior and the BG/NBD model parameters.

Usage

bgnbd_nocov_CET(r, alpha, a, b, dPeriods, vX, vT_x, vT_cal)

bgnbd_staticcov_CET(
  r,
  alpha,
  a,
  b,
  dPeriods,
  vX,
  vT_x,
  vT_cal,
  vCovParams_trans,
  vCovParams_life,
  mCov_trans,
  mCov_life
)

Arguments

r

shape parameter of the Gamma distribution of the purchase process

alpha

scale parameter of the Gamma distribution of the purchase process

a

shape parameter of the Beta distribution of the lifetime process

b

shape parameter of the Beta distribution of the lifetime process

dPeriods

number of periods to predict

vX

Frequency vector of length n counting the numbers of purchases.

vT_x

Recency vector of length n.

vT_cal

Vector of length n indicating the total number of periods of observation.

vCovParams_trans

Vector of estimated parameters for the transaction covariates.

vCovParams_life

Vector of estimated parameters for the lifetime covariates.

mCov_trans

Matrix containing the covariates data affecting the transaction process. One column for each covariate.

mCov_life

Matrix containing the covariates data affecting the lifetime process. One column for each covariate.

Details

mCov_trans is a matrix containing the covariates data of the time-invariant covariates that affect the transaction process. Each column represents a different covariate. For every column a gamma parameter needs to added to vCovParams_trans at the respective position.

mCov_life is a matrix containing the covariates data of the time-invariant covariates that affect the lifetime process. Each column represents a different covariate. For every column a gamma parameter needs to added to vCovParams_life at the respective position.

Value

Returns a vector containing the conditional expected transactions for the existing customers in the BG/NBD model.

References

Fader PS, Hardie BGS, Lee, KL (2005). ““Counting Your Customers” the Easy Way: An Alternative to the Pareto/NBD Model” Marketing Science, 24(2), 275–284.

Fader PS, Hardie BGS (2013). “Overcoming the BG/NBD Model’s #NUM! Error Problem” URL http://brucehardie.com/notes/027/bgnbd_num_error.pdf.

Fader PS, Hardie BGS (2007). “Incorporating time-invariant covariates into the Pareto/NBD and BG/NBD models.” URL http://www.brucehardie.com/notes/019/time_invariant_covariates.pdf.


[Package CLVTools version 0.8.0 Index]